NEW YORK (Dow Jones)–Federal Reserve Bank of Kansas City President Thomas Hoenig argued Thursday against stripping the central bank of its bank-oversight role and said it was especially important for the Fed to continue to watch over smaller banks.
“The strong opposition to removing the Federal Reserve from regional and community bank supervision, voiced by myself and others from the Federal Reserve, is not driven by the idea of simply protecting our ‘turf’ or saving Federal Reserve jobs,” Hoenig said.
Instead, watching over smaller banks, as well as large institutions, is a core mission of the Fed, and taking that power away could create real problems.
Full story: CORRECT:=Fed’s Hoenig: Important For Fed To Watch Over Smaller Banks – WSJ.com